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Discussion Starter · #1 · (Edited)
(Reuters) - Germany's Volkswagen (VOWG_p.DE) posted higher-than-expected operating profit in the third quarter, boosted by European and Chinese buyers of its luxury Audi and Porsche models.

Underlying earnings at Europe's largest automotive group jumped 16 percent to 3.23 billion euros (2.54 billion pounds), VW said on Thursday, beating the top-end forecast of 3.09 billion euros in a Reuters poll of analysts.

Buoyed by a recovery in core European markets, the German group stuck to its guidance for a 2014 operating profit margin between 5.5 percent and 6.5 percent, after 5.9 percent last year.

It also confirmed a forecast for revenue within a range of plus or minus 3 percent of last year's record 197 billion euros. Quarterly revenues were up 4.1 percent at 48.9 billion euros, VW said.

Volkswagen's stock rose 3.7 percent to 168.05 euros in early trade, outperforming a 1.9 percent increase by the autos sector .SXAP.

VW's third-quarter group vehicle sales were up 4.1 percent, at a record 2.43 million autos, with volume growth in China and Europe offsetting declines in the Americas, keeping VW on course to hit a 10 million car-sales target four years early in 2014.

Quarterly deliveries of Audi and Porsche models, which account for about two thirds of VW group earnings before interest and tax (EBIT), were up 7.2 percent and 25 percent respectively to 429,250 and 47,800 cars.

But operating profit at the core passenger-car brand, VW's biggest unit by sales and revenue, has tumbled as the mass-market division grapples with stagnant sales, high fixed costs and spending on technology such as VW's MQB modular production platform.

To spur earnings power at the namesake brand which is key to VW's global expansion, Chief Executive Martin Winterkorn in July announced a goal to cut costs by 5 billion euros per year from 2017, the centrepiece of an efficiency drive spanning the twelve-brand group.

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It's not just not BMW & Mercedes Benz are making big money in Europe, so are Audi & Porsche.
 

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They can endure lower margins on mainstreams VWs and still be very profitable as a company. Opel and Ford should be worried, although they have NA trucks to rely on in the same way.
This.

However they aren't going to grow in North America until they have a full line of large Trucks and Crossovers. I know the Crossblue (or whatever they call it) is coming, but they are waaaaaaaay late to the party. Still have baffled why they don't offer their small pickup in this market as well.
 

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This.

However they aren't going to grow in North America until they have a full line of large Trucks and Crossovers. I know the Crossblue (or whatever they call it) is coming, but they are waaaaaaaay late to the party. Still have baffled why they don't offer their small pickup in this market as well.
They were perversely slow to sell the Caddy pickup in a number of European countries but it was quite a popular "grey" import.
 

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Discussion Starter · #6 · (Edited)
Not gonna make any money on the Caddy, the more lucrative VW Amarok that is sold everywhere.



It kinda pisses me off big time GM Europe don't have pick-up truck thats huge at generating "Wealth Creation", profit generation thats something GM Europe are very thin on ground with in the EU, sales l know are relatively small compared to the US, but European pick-up truck sales growth is out pacing the rest of the EU car market Ranger sales were up nearly 150% Hilux sales doubled last year in the EU.

Pick-up trucks are highly profitable General Motors Europe is not a pick-up truck player to Europeans in one of GM's 4 big world global market continents, GM Europe should hold there head in shame 0 highly profitable very lucrative pick-up truck sales to 740 million Europeans shame on you.

Just imagine an Opel pick-up truck maybe a rebadged GMC pick-up to swoon over (No development costs to Opel, will generate a high profit yield on the roof) and the huge profits on the roof it could generate in Europe rather than huge losses on small FWD cars like an Agila (A billion saved in development costs of a car sold a huge losses) that a highly profitable GMC pick-up would probably outsell huge loss making Agila..

I just like vehicles that are gonna produce a nice tidy healthy profit for Opel in Europe, so they have the money to reinvest in themselves without relying to much on General Motors US having to continually spoon feed Opel billions of USA sent $$$ every year Rupert..
 

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Until 2002, Opel/Vauxhall used to get Isuzu pickups and SUVs although it was the GM components that let them down compared with Isuzu's own versions also sold in Europe - the GM-Isuzu joint arrangement in Europe ended then but I understand it carried on elsewhere.
 

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Discussion Starter · #8 · (Edited)
Until 2002, Opel/Vauxhall used to get Isuzu pickups and SUVs although it was the GM components that let them down compared with Isuzu's own versions also sold in Europe - the GM-Isuzu joint arrangement in Europe ended then but I understand it carried on elsewhere.
VW Amarok pick-up truck has help put VW as No2 place in the UK commercial vehicle market last year, you are absolutely right Rupert it's a shame GM are no longer a player, GM sold off all their share in Isuzu ages ago, all the UK Isuzu profits are sent back to Japan, and the jobs/wage packets are spent in boosting Thailand economy/employment. General Motors lucrative pick-up trucks sales in Europe last year 0.

VW Amarok helps cement VW No2 position in the UK commercial vehicles market.
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The Isuzu D-Max is sold in Europe, presumably it's relationship with Chevrolet/Holden Colorado and GMC Canyon is limited in geographic scope giving it "exclusive" sales in Europe.

The reality is that GM doesn't have it's own light pick-up to sell anywhere.
 

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Discussion Starter · #10 · (Edited)
The Isuzu D-Max is sold in Europe, presumably it's relationship with Chevrolet/Holden Colorado and GMC Canyon is limited in geographic scope giving it "exclusive" sales in Europe.

The reality is that GM doesn't have it's own light pick-up to sell anywhere.
GM sold off their share in Isuzu ages ago, General Motors Europe makes not a dime on what Isuzu sells in Europe Rupert, all the profits are sent back to Japan, and it is assembled in Thailand thats boosting the Thai economy & jobs.

Gotta say l hired a 2012 Chevy LUV pick-up (must be sold in the Middle East) last year in Cyprus on vacation near Kathikas, it was a fantastic little truck almost car like to drive, it swallowed 6 large suitcase and 6 large bags with loads of space to spare. We needed it as we hired a villa up in the mountain roads and 2 miles off the nearest tarmac road with big drops and narrow winding roads with 500-1,000 ft drops with no barriers over cliff edges, 4WD was very useful and very reassuring as when you turned into the villa it was a 45 degree climb if you rolled back stalled it lost grip it was no barrier 500 feet drop.

All that was Chevrolet on the Chevy LUV was the two badges, everything under the hood had a Isuzu logo stamped on it. Badge design looked like the only technically advanced cutting edge design input that Chevrolet had put into the whole truck.

You are absolutely right Rupert the reality is that GM Europe doesn't have it's own light duty pick-up to sell anywhere. 0 sales in Europe 00.00 Euro's in revenue from 740 million Europeans in Europe one of GM's 4 big global world markets it ignores can't be bothered to do very lucrative pick-up truck, but will waste $558 millions on sponsoring Manchester United for 3 lousy no profit on the roof South Korean FWD Chevy UK sales that have been achieved by Chevy UK since 2014-15 soccer season began in August, $588 millions for just 3 FWD car sales in the last 3 months!!
 

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Results like this show the advantage of having multiple revenue streams and the importance of feeding all of them product.

Audi and Porsche are providing the revenue required for VW to develop it's future and expect in a few years VW will be reaping the rewards of the new architecture.

VW also has a cohesive vision of global markets and places brands where they are best suited without regard of what other brands do, which is why their revenue grew where GM's fell.

GM has yet to create a comprehensive plan to maximize revenue from each brand in the shortest time span and failure of Cadillac/Chevrolet global plan has cost GM precious time and tens of billions in cash. GM must present a new global plan with Buick/GMC as the "focus" brands that integrates Holden/Opel/Vauxhall products into a profitable global lineup with emphasis on revenue growth. Had GM already done this, GM would have handily out-earned VW in the 3rd quarter and been sitting on a ton of cash.
 

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Not gonna make any money on the Caddy, the more lucrative VW Amarok that is sold everywhere.



It kinda pisses me off big time GM Europe don't have pick-up truck thats huge at generating "Wealth Creation", profit generation thats something GM Europe are very thin on ground with in the EU, sales l know are relatively small compared to the US, but European pick-up truck sales growth is out pacing the rest of the EU car market Ranger sales were up nearly 150% Hilux sales doubled last year in the EU.

Pick-up trucks are highly profitable General Motors Europe is not a pick-up truck player to Europeans in one of GM's 4 big world global market continents, GM Europe should hold there head in shame 0 highly profitable very lucrative pick-up truck sales to 740 million Europeans shame on you.

Just imagine an Opel pick-up truck maybe a rebadged GMC pick-up to swoon over (No development costs to Opel, will generate a high profit yield on the roof) and the huge profits on the roof it could generate in Europe rather than huge losses on small FWD cars like an Agila (A billion saved in development costs of a car sold a huge losses) that a highly profitable GMC pick-up would probably outsell huge loss making Agila..

I just like vehicles that are gonna produce a nice tidy healthy profit for Opel in Europe, so they have the money to reinvest in themselves without relying to much on General Motors US having to continually spoon feed Opel billions of USA sent $$$ every year Rupert..
The Amarok looks like it is close to the size of the Canyon, so not sure why GM is not selling the Canyon in Europe, and it needs to be a GMC truck along with SUV's that compliment the Opel/Vauxhall line that needs to add a model into the 3-Series/A4/C-Class segment along with a "Panda" sized CUV along with many others. GM needs to add GMC into Europe and have it become General Motors' Commercial brand there, moving Commercial Vans to GMC and growing the Compact Truck and Off-Road capable SUV markets. This will leave Opel/Vauxhall free to properly grow their Car, CUV and Crossover product and improve their image that will allow Opel/Vauxhall to re-enter segments they abandoned years ago.

GMC can compete with Jeep/RAM and Land Rover and leave Opel/Vauxhall to focus on Ford, PSA and VW along with the Asian Automakers in Europe and enter into some Audi/BMW and MB territory while Cadillac gets it's product line together and focuses on China and U.S. markets where it is already established.

Maximize revenue where it is the easiest to generate, GMC can be "inserted" into many markets with a strong revenue generating lineup using established distribution networks. Cadillac has great growth potential in China and a few strategic tweaks will correct past Cadillac mistakes in the U.S. Opel/Vauxhall can add several great products into Europe that would dramatically increase revenue. Opel/Vauxhall need to enter/re-enter several global markets where it can generate more revenue than any other GM brand as well.

GM is sitting on a Gold Mine of brands that can out-earn any automaker over the next 5-years, what is missing is how to get there.
 

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The Amarok looks like it is close to the size of the Canyon, so not sure why GM is not selling the Canyon in Europe, and it needs to be a GMC truck along with SUV's that compliment the Opel/Vauxhall line that needs to add a model into the 3-Series/A4/C-Class segment along with a "Panda" sized CUV along with many others. GM needs to add GMC into Europe and have it become General Motors' Commercial brand there, moving Commercial Vans to GMC and growing the Compact Truck and Off-Road capable SUV markets. This will leave Opel/Vauxhall free to properly grow their Car, CUV and Crossover product and improve their image that will allow Opel/Vauxhall to re-enter segments they abandoned years ago.

GMC can compete with Jeep/RAM and Land Rover and leave Opel/Vauxhall to focus on Ford, PSA and VW along with the Asian Automakers in Europe and enter into some Audi/BMW and MB territory while Cadillac gets it's product line together and focuses on China and U.S. markets where it is already established.

Maximize revenue where it is the easiest to generate, GMC can be "inserted" into many markets with a strong revenue generating lineup using established distribution networks. Cadillac has great growth potential in China and a few strategic tweaks will correct past Cadillac mistakes in the U.S. Opel/Vauxhall can add several great products into Europe that would dramatically increase revenue. Opel/Vauxhall need to enter/re-enter several global markets where it can generate more revenue than any other GM brand as well.

GM is sitting on a Gold Mine of brands that can out-earn any automaker over the next 5-years, what is missing is how to get there.
The Chevrolet Colorado and GMC Canyon aren't GM's to sell - they're Isuzu D-Max, already on sale in Europe.

Introducing another US-brand to Europe, where all new GM brands have failed in the past (Chevrolet, Cadillac), is no easy task - the UK used to separate commercial as Bedford from passenger as Vauxhall, just like Thames was commercial to Ford passenger vehicles but both commercial brands have been absorbed into the passenger brands - it does Mercedes-Benz car sales no harm to have big trucks and delivery vans branded the same.

On GMI, I keep hearing that GM is king of the trucks - if it's so good, just when will they develop their own light pickup, the size of Amarok, Colorado, Canyon and fit it with some good diesels - that'll be the time to bring it to Europe.
 

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The Chevrolet Colorado and GMC Canyon aren't GM's to sell - they're Isuzu D-Max, already on sale in Europe.

Introducing another US-brand to Europe, where all new GM brands have failed in the past (Chevrolet, Cadillac), is no easy task - the UK used to separate commercial as Bedford from passenger as Vauxhall, just like Thames was commercial to Ford passenger vehicles but both commercial brands have been absorbed into the passenger brands - it does Mercedes-Benz car sales no harm to have big trucks and delivery vans branded the same.

On GMI, I keep hearing that GM is king of the trucks - if it's so good, just when will they develop their own light pickup, the size of Amarok, Colorado, Canyon and fit it with some good diesels - that'll be the time to bring it to Europe.
Had a feeling that GM was restricted from offering the Canyon in other markets and is a reason for GM to develop it's own Next Gen Canyon along with the Turbo-Diesels to go with it as you suggest.

Never been a fan of JV's on vehicles with global market potential since the costs you save are never equal to the the revenue lost and the majority of the time are "penny wise and pound foolish".

GM would be far better off making GMC it's global Truck/CUV/SUV/Crossover brand as a competitor to RAM/Jeep as well as their Global Commercial Trucks, Van and Medium Duty Brand to compete with Fiat/RAM Commercial, MAN and Hino.

GM can use one brand (GMC) to develop a single strong Global lineup without revenue restrictions saving billions with the agility to quickly take advantage of market changes. GMC can be a "portable" brand that can easily enter most global markets as a complimentary brand to any existing GM brand, including Chevrolet which makes market entry quick and low cost that generates profitable sales revenue quicker with 100% of it going to GM.

I agree that selling commercial and passenger vehicles under the same brand is not always detrimental to a brand and why GMC selling vehicles smaller than the Terrain along with Class 4, 5, 6 and 7 Trucks will not harm GMC's "Professional Grade" tagline or the desirability of any of it's Denali offerings. In fact I think it will help both GMC's "retail" (passenger) and Commercial (fleet) sales while maintaining GMC's image of a premium Truck/SUV brand.

Now I could see Vauxhall offering GMC commercial products as Vauxhall since many of them are currently produced there and Holden would offer Holden branded Commercial products due to market size. Since both are RHD and have similar styling, it is easy to change the badge from Vauxhall to Holden or the other way round.

"Retail" GMC products like Envoy, Terrain and other CUV's would remain GMC in Vauxhall dealers with Vauxhall offering their own variant to most if not all GMC products below the Sierra/Yukon/Savana since they would be shared globally with Buick/Opel and Holden.

Advantages of having GMC be the "single global Truck/SUV/Commercial brand" are lower costs with full revenue and product control, and that revenue will be huge with high margins that can be generated in a extremely short time.
 
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